Alberta Investment Management Corporation (AIMCo) is pleased to announce that it has agreed to acquire an ownership stake in Howard Energy Partners from EnLink Midstream Partners, LP.
The investment, representing an ownership stake of approximately 28% of Howard Energy Partners, makes AIMCo the second largest unitholder in the company. The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions, including regulatory approvals.
The transaction follows AIMCo's initial investment in August 2016, which allowed for the purchase of up to US$500 million of Series B Preferred Units (Preferred Units) of Howard Energy Partners.
Howard Energy Partners is a diversified, growth-oriented midstream provider with assets in the Eagle Ford Shale region of South Texas, along the Gulf Coast of Texas, as well as in the Marcellus Shale region in Pennsylvania. The investment represents a compelling opportunity for AIMCo's clients to participate in an attractive midstream portfolio with exposure to high demand markets. It is supported by a high quality management team with a demonstrated track record of execution and a robust project pipeline that will produce stable, fee-based cash flows.
Commenting on the investment, Kevin Uebelein, AIMCo Chief Executive Officer said, "AIMCo is very pleased to have the opportunity to increase our investment in Howard Energy Partners. Since our preferred investment in August, we have forged a strong working relationship with Howard Energy Partners' management team, as well as with the other investment partners, and we are confident in their opportunities for continued growth in the future."
Evercore served as financial advisor and Kirkland & Ellis LLP served as legal counsel to AIMCo.